Business-Insurance and Taxation

The insurance pays a certain amount of compensation to the other family Member of the famiy when the Insured person dies

Life ansurance

tax credits

specific amounts used to directly reduce tax liability

PRSI (Pay Related Social Insurance)

tax that allows people to gain benefits in the future ( Welfare benefits ,unemployment benefit )

USC (Universal Social Charge)

Tax payable on all incomes. It is a progressive tax.

P21 form

A end of year statement that is a document that shows tax paid,

VAT (value added tax)

tax added to the price of goods or services

indirect tax

a not levied on person income but passed from one person to another.

CGT(capital gains tax)

tax that households have to pay on the profit they make when they sell one of thier assets (holiday homes)

CAT (Capital Acquisitions Tax)

Tax paid on gifts and inheritance

DIRT (Deposit Interest Retention Tax)

This is a tax on interest earned on savings. It is deducted at source by the bank and sent to Revenue.

Motor Tax

tax on motor vehicles.

Self assessment income tax

Is paid by self employed people on their incomes. Pay on their business profits. It is a direct tax. Business to avoid tax envasion/avoidance have revenue Audits

Direct Tax

a tax an individual pays directly to the government

Revenue Audit

tax inspectors call out to see if tax was paid

Corporation tax

A direct tax on companies. A tax based on profit.

custom duties

taxes on foreign imported goods

Tax paid on private medical bills on household members that are ill and require medical attention

Health Insurance

3 reasons for Taxation

Raise money, redistribute wealth, discourage consumption

PAYE (Pay As You Earn)

This is a tax on your gross pay. It is a progressive tax. It is deducted at source by the employers and given to the revenue.

regressive tax

A tax for which the percentage of income paid in taxes decreases as income increases

progressive tax

A tax for which the percentage of income paid in taxes increases as income increases

Commercial rates

A tax that businesses must pay to their local council every year. For example if you have a shop in kildare you have to play the kildare county council.

Employer's PRSI

Paid to qualify for welfare benefits in the future. It is deducted as a percentage of the employee’s gross wage.

Effects of taxation on business

1. Lower Profits
2. Lower Sales
3. Higher Costs
4. Less Overtime